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with Heavy Inventory

 

 

"Our inventories are too heavy, tying up a lot of cash, and it's a chronic problem. we want to be sure we have what our customers want, but we know we've simply got too much. We just can't seem to get our arms around the problem. Can you help us?”

 

 

Yes We Can!

 

Heavy inventories can be a drain on any retailer. While it's clearly important to present customers with compelling assortments of the things they expect to find, too much inventory chews up a lot of cash, and also erodes a lot of other business fundamentals.

The more inventory that's on hand, the longer it's likely hang around, and the greater the markdowns that will be needed to move it through, which robs a you of gross margin dollars, cash and profitability.

And it doesn't end there. An on-going pattern of markdowns destroys price integrity and your customer's sense of urgency. Once they catch on, they'll simply wait you out, knowing it's going to get marked down eventually. You end up trading earlier full-margin sales for later markdown sales.

We understand the many ways that inventories can build up, and that bringing inventory levels down needs to be done carefully. We'll take the time to listen to you, learn about your business and get your take on the situation. We'll do the analysis to identify and quantify the excesses, recommend strategies for realigning inventory levels and assist you in implementing those recommendations.

 

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Hurlbut & Associates is a retail consulting and business advisory firm which focuses on strategic, operational, merchandising and inventory management issues. Our retail clients leverage our  expertise to increase sales, margins, profitability and cash flow.

 
 

 

Related Reading:

 

"Planning: The Root Cause of Many Small Retail Inventory Problems"

 

"The Dollars and Cents of Inventory Turn"

 

"A Cash Flow Key - Think of Inventory in Terms of Time"

 

"The Coin of the Realm"

 

"Low Hanging Fruit, Sludge and Everything Else"

 

"Measuring Inventory Productivity"

 

 

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